Tag Archives: Customer Engagement

30 reasons to use Customer Data Platform for eCommerce

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Information is king, and businesses are constantly on the lookout for tools that can provide a richer understanding of their customers and the journey they embark upon. Customer Data Platforms (CDP) have emerged as crucial tools, particularly for the burgeoning realm of eCommerce.

30 Reasons To Use A CDP

Here’s a deep dive into why CDPs should be at the heart of your digital strategy:

1. Seamless Automation

Trust in a CDP to transform complex data streams into easily digestible and actionable insights, automating processes that would otherwise drain resources.

2. Eliminating Operational Silos

Facilitate efficient information-sharing across departments with a CDP, creating a unified vision for your business.

3. Enriching the Customer Journey

Harness CDPs to unlock a comprehensive understanding of your customer’s interactions, ensuring you’re always delivering value.

4. Intelligent Marketing Segmentation

Harness the power of AI to sift through varied data, empowering you to create precisely targeted marketing campaigns.

5. Tailored Communication

Today’s consumer demands personalization. With a CDP, ensure every touchpoint resonates and builds loyalty.

6. Crafting Memorable Experiences

Use data-driven insights to craft seamless experiences, both online and offline, enhancing customer satisfaction.

7. Metrics that Matter

Deploy CDPs to get an eagle’s eye view on the efficacy of your eCommerce strategies, refining them as you grow.

8. Real-time Relevance

In an ever-changing market landscape, CDPs ensure you’re always a step ahead, thanks to real-time data updates.

9. 360-Degree Customer View

Break down the barriers between online and offline data to truly understand your customer’s journey.

10. Unified Customer Profiles

Leverage a CDP to get an in-depth understanding of your audience personas, refining your marketing strategies.

11. Stand Out from the Crowd

Responsive data-driven strategies ensure you’re always ahead of the curve, a must in today’s competitive marketplace.

12. Maximizing Customer Lifetime Value

Invest in understanding your current customers’ needs and behaviors, ensuring they remain loyal advocates.

13. Merging Digital and Physical

Achieve true omnichannel success by merging online and offline data streams.

14. Refining Offerings

Listen to your customers. Let their feedback guide improvements in your products and services.

15. Attracting Ready Buyers

Precision-target your messaging to capture those on the cusp of purchase.

16. Deep Customer Engagement

Leverage CDP insights to truly engage customers across every touchpoint, building loyalty and trust.

17. Enhancing Marketing Tools

Amplify the efficiency of your current marketing tools by integrating them with a powerful CDP.

18. Spotting and Addressing Anomalies

Ensure your strategy is always on track by identifying and rectifying any anomalies.

19. Anticipating Customer Behavior

Predict future customer actions and behaviors, refining your strategies for maximum impact.

20. Optimized Operational Efficiency

Drive efficiency by streamlining data processes, freeing up resources for strategic action.

21. Strategic Pricing

Ensure your pricing remains competitive and appealing by gauging customer sentiment and market trends.

22. Effective Supplier Negotiations

Utilize historical data to drive better deals and collaborations with suppliers.

23. Never Miss Feedback

Continuous monitoring ensures you’re always in the loop, adjusting strategies based on real-time feedback.

24. Minimize Cart Abandonment

Dive deep into the reasons behind cart abandonment, ensuring your checkout process is as smooth as possible.

25. Addressing Checkout Drop-offs

Investigate and rectify factors causing customers to abandon checkouts, maximizing conversions.

26. Tackling Churn Rates

Unearth the reasons behind dwindling customer loyalty and rectify them, building a lasting relationship.

27. Boosting Conversion Rates

Harness data insights to optimize your site’s usability and messaging, driving higher conversions.

28. Driving Organic Traffic

Strategically leverage live content and social media to naturally increase site visitors.

29. Elevating Social Media Engagement

Deepen customer relationships by engaging them on social platforms, turning followers into loyal customers.

30. Embrace the Future

Data is the future of marketing and sales. Integrate a CDP into your strategy and ensure your brand remains at the forefront.

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For a comprehensive understanding of the transformative power of CDPs, delve into Arena’s ebook Diving Into The Customer Journey In Live Ecommerce. The insights within can be the key to unlocking the full potential of your eCommerce strategy.

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Customer Centric: what is it, benefits, and how to apply this strategy

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A customer-centric approach is nothing new in businesses, but it is transforming the way companies work nowadays. It’s time to understand more about it.

Being customer-centric is not a new conception in the market. However, with the changes in customer behavior these days, it’s a strategy that is becoming more popular. It’s not only about focusing on the customers, but it’s also about making them the core of your business.

Some time ago, industries used to lead product-centered strategies, meaning that if a product wasn’t selling well, it needed to be renewed and improved. However, as time went by, marketing professionals started to notice the problem was not in the product, but in who was buying it. If you don’t have the right consumer, there’s no point in having the highest quality solution in the market.

Because of that, customer-centric is becoming more and more popular. As a matter of fact, this is far from being a brand-new concept. Companies have known it for ages, but it seems like the notion of it really started to gain attention in recent years.

Since customers now are more educated and informed, their expectations are getting higher by the day. If the company doesn’t find a way to live up to that, it will most likely not survive in the market. To genuinely build the right product and invest in the right marketing campaigns, following a customer-centric strategy is ideal.

What is customer-centric?

Also knowns as client-centric or customer-centricity, this is an approach that aims to put the customer in the center of everything. All strategies and actions the company makes are addressed to the customer. So, if an idea doesn’t fulfill the “will our customer want and like this?” aspect, it probably will be left aside.

Clients are the purpose of a company even starting to work and for that reason, they need to be satisfied with their acquisitions. That means paying attention to the consumer before, during, and after a sale happens — therefore, being directed related to customer experience. The goal is to provide the most positive experience possible.

For a business to have good results, being customer-centric shouldn’t be just a strategy. It should be the core of everything it’s done, creating a customer-centric culture inside the company. That way, every product, service, and publicity will happen around the consumer’s needs and pain points. Because of that, one of the most important things here is to know your consumer.

It’s more than creating a good product, it’s about developing something that’s so good and fit to the client that they don’t want to buy from anywhere else. This approach is to increase customer loyalty and retention rates.

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What are the benefits of customer-centric?

Aside from knowing the consumer and creating all the picture-perfect products and ads for them, there is much more we can talk about a customer-centric approach. All the benefits it brings to a business are surely in your interest, so this is what we’ll address next. 

Increase the customer lifetime value

In recent days, new customers are more expensive than retaining the ones you already have. For that reason, when you work with a customer-centric method, you will eventually increase the customer lifetime value.

In other words, a strategy such as putting the customer at the core of the business will, consequently, give the clients more reasons to be loyal to the brand. That’s what the company needs to focus on: strategies to make current customers buy more and frequently.

Moreover, this will lead to an increase in retention rates and also in overall profits. In fact, a mere 5% increase in customer retention leads to at least a 25% increase in profits — but it can be up to 95%.

Anticipate customers needs

Every area in the market has its competition and it’s important to be known as the innovator. When a customer is at the center of strategies, the problems they have will be explored so the company knows what to look at when building their solutions. With a thorough data collection in real-time, it’s possible to anticipate customer behavior and offer accurate, original products.

Gain a competitive edge

With loyal customers and a real-time data collection strategy, your company will become a strong competitor. Every business will be looking at you as an example of what to do and how to achieve success.

With so much alike solutions and prices, positive customer experience will be the differential of the brand. It’s actually common to see people pay more on services because they offer a unique experience — rather than because of quality.

How to become customer-centric

Well, surely, put the customer at the center of the strategy is the first thing that comes to mind. But it’s about much more than that. To truly enjoy all the advantages of this strategy, there is a need to work with empathy. This means, basically, what we’ve been saying so far: 

First look at the customer, then work on the product.

Since the rise of the internet, customer behavior has been in constant innovation. Every year companies need to renew their strategies so they can keep up with the changes. The good thing is technology has found its way to be one step ahead by creating data-collection platforms that help understand who is the consumer and how they act online.

Overall, some characteristics of a customer-centric business are:

  • use customer data to understand the customer base;
  • analyze who are the best customers and focus on products for them;
  • give special attention to customer success and experience;
  • practice audience engagement;
  • identity opportunities and make data-driven actions.

By using a Customer Data Platform, all information available about a brand’s consumers will be at easy access. From names, ages, and demographic to time spent online, and pages visited. The CDP can collect data from all channels and sources the company is connected with, such as website, online store, social media, payment systems, app, and so on. That’s why a customer-centric approach should be accompanied by a CDP solution.

The more you know about a customer, the better the chances are of having a successful customer-centric strategy. As a matter of fact, to implement this method in your company, it needs to go beyond marketing and sales teams. The entire firm should follow a customer-centric culture. This means customer support, product team, engineers, and whatever other sectors the company has will all be focused on learning and working around the customer.

In addition, it’s important to remember results don’t come overnight. This plan is a long-term project of building durable relationships and providing positive experiences over and over again. After all, customer acquisition costs are way higher than maintaining a devoted customer base. In order for that to happen, the brand needs to be in regular communication with the customer, whether over chats, email, or social media.

Customer-centric marketing

It’s was pretty much implicit that this approach could be used to marketing-related actions. For one, you can’t build a customer relationship without the help of the marketing sector. Indeed, performing an Inbound Marketing plan and delivering content is essential to establish bonds with an audience.

With the assistance of a Customer Data Platform, while being a customer-centric company, every moment of the customer experience can be thought of with minimum effort. Surely, it’s still something that requires the full attention of marketing professionals. However, they can focus more on planning strategies and content than on analyzing data and metrics.

The entire customer journey has to be worked in a marketing strategy. This means personalized content and ads will be sent at every stage of the journey. Even after a purchase is finished, marketing needs to be creating the right materials to send the customer. It’s the only way they’ll become loyal to the brand, maybe even turning into brand advocates and promoters. 

Moreover, based on purchase history and engagement with the brand, personalized recommendations will have a great effect in strengthening the relationship. The essential is focusing on what the customer wants — something you’ll be able to do through data analysis.

How a customer-centric approach impacts sales

In the old days, a sales process was demanding for the salesperson. They had to know every little detail about the product or service and have the ability to negotiate to close as many deals as possible. Nowadays, with the customer-centric strategy, things have taken a turn.

Since the customer is the focal point, a sales rep is no longer the person who showcases the product and tries to sell it at any cost. In fact, they understand the customer pain points, wishes, and demands so they can perform as a consultant — demonstrating how certain products will help solve their issues.

Because of this, it’s just as important for a sales team to have access to CDP data as a marketing team. Customer data is crucial to understand their journey and what is the best way to act in each particular moment. Even though a customer-centric strategy doesn’t attract many new consumers, it does keep the existing client base more loyal. For this reason, identifying the most valuable customers, the ones that generate profits, is a way to assist sales professionals chose their target better.

Customer-centric and customer experience

You must have noticed that customer experience has been mentioned a few times throughout your reading. That’s because there is a relationship between customer-centric and customer experience. But what is it?

In general, customer experience is the relationship a client has with the brand. From their perception at the first contact to their satisfaction after buying a product, every step of the way is a potential influence on their experience. Therefore, a customer-centric company needs to bring a positive customer experience at every moment of the customer journey

Brands that apply Customer-Centric 

For a better comprehension of how a customer-centric company performs (and their results), a few examples can be brought here. These three companies are stand-outs in working with their customers at the center of everything. However, there are many more to keep an eye on for inspiration, such as Nike — their empathy really shows in every marketing campaign they launch.

Amazon

If you have the habit of doing online shopping, you probably already got something from Amazon. Do you remember how was the experience? This is a brand that nobody can question the customer is at the center of their attention. Everything they do is to improve the customer experience.

Details like the 1-click purchase using data previously saved make a difference in obtaining customer loyalty. Besides, people are always talking about their delivery service — they are fast and accurate with their deadlines. Thus, customer satisfaction is never a problem in their hands.

Disney

Disney is a brand that embraces lots of different products and services, such as animated movies, TV channels, and amusement parks. Nonetheless, it’s noticeable how all of their actions are directed to their clients. They work hard to keep their customer-centric culture remarkable. This means customer-centric works beyond digital strategies.

The thing is, people can see the value in the brand. They happily pay more to go to Disney’s park then they would to go to any other park. 

Slack 

Even though this isn’t such a recognized brand as the other two, it’s still worth mentioning their method of work. Slack is a cloud-based communication company that is rapidly growing. Their approach is totally concentrated on the customer experience. 

Instead of having a group of professionals that knows every single detail of the product, they focus on certain areas of expertise. That way, when a customer contacts the team with a question, they are redirected to an expert in the area.

Plus, customer service and product development work in union to always update the service as they notice customers’ needs. Slack is a brand known to be open to feedback from their clients, so more than gathering data, they are regularly monitoring brand mentions so they can meet customers’ expectations.

How to measure the success of a Customer-Centric strategy 

So, you’ve established a customer-centric approach in your company and got everyone working towards it. How do you know if you’re having the desired results? There are three metrics that will give you the answer: churn rate, net promoter score, and customer lifetime value.

Churn rate

First of all, the churn rate. This metric is related to the number of customers who no longer interact and buy your products. To measure it, it’s necessary to divide the number of customers who left in a certain time period (1 month, 6 months, 12 months, and so on) by the average number of costumers in the same time period. If you lost 10 customers out of 100, for example, your churn rate will be 10%.

Since you want your customers to keep engaged and buying from you, in order to have a successful customer-centric approach, your churn rate needs to be the lowest possible.

Net promoter score (NPS)

The NPS, or net promoter score, is about measuring customer loyalty. There is one simple question that revolves around this metric: “how likely are you to recommend us to friends?”. And, in a 0 to 10 scale, people can be classified as detractors, passives, or promoters. 

  • Detractors: From 0 up to 6, they are the first kind, the detractors. It means they are not happy with the product or service and are likely to share negative experiences. 
  • Passives: Between 7 and 8, customers are happy, but not loyal. 
  • Promoters: Lastly, when the classification is 9 and 10, people are most likely brand promoters. This means they are not only satisfied with the brand, but also share positive experiences about it.

Once these data become available, the calculus should be the percentage of promoters minus the percentage of detractors. The results need to be higher than 70%, but ideally, for a customer-centric company, they need to be around 80% to 100%.

Customer lifetime value (CLV)

The customer-centric strategy is based on creating a long-term healthy relationship with the customers. So, measuring the customer lifetime value, or CLV, is a way to see if your plans are having positive outcomes.

The calculus is multiplying total revenue by the time of the relationship with the customer (total revenue X average customer lifetime). 

CLV measures the revenue a customer generates to the company for as long as they are paying customers. This is the best metric to understand before and after results when applying the customer-centric approach to your business.

Here at Arena, we have the best CDP solution for your business. With our real-time data collection, you’ll be able to know exactly who is your consumer and how to work thinking about them. Learn more about our solutions by talking to a consultant.

Data-driven marketing: learn how to work it with your customers

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Data-driven marketing belongs to a new customer service approach that unleashes companies’ potential to make better, scalable marketing decisions and benefit from higher marketing ROI. It represents the future of customer experience and meaningful branding messages.

You already know what people say: Knowledge is power. Facts, information, and skills acquired through experiences are gold mines for every company that wishes to stand out and stay relevant in their customers’ minds.

Customer data platforms tells marketers everything they need to know about their target audiences. Through digitalization and its multi-channels, it became possible to trace people’s actions across the digital and physical worlds to optimize the process of offering customized products and services that match individual needs.

However, these days, data must be smooth to access and easy to visualize. This happens because customers want quick responses, which timing and effectiveness are highly affected by delays and assumptions.

In this unforgiving environment, are you confident that your marketing decisions are based on facts? When important events on your field take place, how quickly can you respond to them? How many customized experiences do you actually deliver to your customers?

If the answers to those questions concern you, you’re at the right place, at the right time. Get ready to know how data-driven marketing can take you closer to the answers you wish you could give.

In this article, you’ll find out:

  • What is data-driven marketing;
  • Data-driven marketing benefits;
  • Impacts on customer experience;
  • How to work data-driven in consumer segmentation;
  • And examples of data-driven culture.

With that in mind, let’s move forward.

What is data-driven marketing?

Data-driven marketing is a strategy that uses customers’ reliable information to personalize whole marketing communications and experiences. From buying journeys to targeted media and in-store service, data-driven marketing accesses massive information to leverage decisions and make the right judgment about what customers need. This helps marketers to refine strategies based on facts, not guesswork.

But where does data-driven marketing get all the information from?

When you use your phone’s mobile apps or desktop devices to web navigate, you’re leaving traces all around the internet. The applications you use are designed to send data to companies so they know what websites you access, with who you’re interacting with, the locations you have been to, and more relevant information that clarifies your individual preferences and lifestyle.

Many organizations are already worried about data, but we must call attention to the fact that data-driven marketing goes beyond data itself.

The many devices, platforms, and other types of media you use are surely whispering into marketers’ ears over and over to help them build fact-based decisions that match your expectations. Even so, data-driven strategies merge a high-powered amount of digital and offline channels to give context, collect information, and arrange it in ways that are easy to visualize. Data-driven marketing aims at amazingly-designed customer experiences, but influences internal operations in ways companies have never seen before.

With so much information being generated at all times, data-driven marketing unites the right tools to track, segment, and optimize strategies. When used right, this groundbreaking approach will help you to invest in the right interactions to increase customer retention and bring you more marketing ROI.

Data-driven marketing benefits 

Now that you know the importance of data-driven and how it is revolutionizing marketing strategies, it is time to highlight some of its many benefits.

Segmentation

Data-driven marketing is the key to build marvelous customer experiences based on well-designed segmentation. The first step is to select the right customer segment to drive marketing efforts into. After that, you will be prepared to work on specific, tailored tactics to sharpen your customer touchpoints, whether they’re potential or not.

By segmenting a target market, it gets easier to develop products, solutions, and approaches that will attract the right people to your brand. Segmentation also provides transparency when you wish to know how your campaigns are resonating with the public and gives you a better understanding of particular users’ behavior.

Customer acquisition

Four essential questions must be answered very carefully when you decide to attract target audiences and contact potential customers:

  1. What message will you tell them?
  2. How will you communicate with them?
  3. When will you reach out to them?
  4. Where will you find them?

In a data-driven approach, all of these questions will be respectively answered based on:

  1. Goals and pain points;
  2. How they behave;
  3. The best timing according to their routine;
  4. And the digital and physical places you’re more likely to meet them.

Even if you have a large number of customers, it is possible to combine data to deliver special, tailored touchpoints that match their behavior and preference. It could be an e-mail, or an SMS, or a live event. Possibilities are countless, but you will surely pick the best ones once you know what customers expect from you and how to engage them.

Data-driven marketing works efficiently when it comes to continuously deliver interactions to match customers’ expectations throughout their journey. With so much information at the palm of your hand, you will be ready to transmit the right message (what) at the right time (when) and place (where).

Revenue

Every company director loves it when technology saves the day by cutting costs and returning investment. Gladly, this is pretty much the case with data-driven marketing.

According to the Forrester report “Insights-Driven Businesses Set the Pace for Global Growth“, data-driven organizations grow 30% per year more than companies that don’t base their strategies on data.

When we take a good look at different markets, it gets even clearer that data-driven strategies embody assertive communication that makes ROI possible.

Custom-made marketing campaigns reach proper audiences, which leads to customer acquisition, which leads to customer engagement – and ROI is coming back to you in each one of these stages. Not to mention the revenue currency that comes from these approaches.

Revenue is also possible by cutting costs, reducing churn, and democratizing information through different companies’ sectors.

Upgrade your marketing strategy

Automation was already a buzz when CRMs arrived to transform the way marketers dealt with customer data. From purchase details to personal information and preferences, CRM was and still is prepared to collect digital data at higher levels. This allows big data to play a more predominant role in marketing: Data is now at its core, deciding the directions companies should take to reach their goals.

It must be said that collecting data became a more complex task, especially when you take the number of multi-channels available these days. Still, this complexity isn’t an excuse: If brands don’t automate operations related to those channels, they will lose way too much time putting effort into what can be automatic, and marketers won’t be able to strengthen their creative side and propose remarkable tactics.

Fortunately, there is a considerable amount of data-driven tools that optimize, clean, and filter important data from multiple sources, whether they’re 1st (directly extracted from customers) or 3rd party (found in the market).

Data-driven marketing automation saves you time, money, and free your team to focus on more important tasks that require human abilities, such as creativity. That is how you truly upgrade your marketing strategy: By quickly analyzing qualitative data and returning a creative response to customers’ issues.

This means a wider customer reach, more relatable content, targeted ads, and personalized customer journeys – to only quote a few.

Don’t forget that numbers and reports play a crucial role in data, but the outcome will only be useful if the human eye analyzing them gets the right insights and develops accurate replies to get closer to customers.

Impacts on customer experience

Lincoln Murphy, known as the Customer Success guru, says that Customer Success is only achieved by combining what customers need to an appropriate experience while delivering the right interactions. As you know now, this has everything to do with data-driven.

Data-driven marketing is a new shift in customer care. It prioritizes customer experience in smart and strategic ways, such as we have never seen before.

Many marketers around the world have embedded data-driven strategies into their routines, taking their time to analyze information that will drive to ideal customer experience. With so many benefits, data-based decisions impact consumers on profuse levels. Take a look at some of the impacts:

Personalize customer interactions 

Needless to say, real engagement is closely related to giving customers a personal touch in everything you do.

Irrelevant content, general messages, and ordinary offers will only frustrate the current consumer. People expect brands to customize every touchpoint and suit them to previous steps of their consumer journey. This means companies need to enrich and individualize communications that work in a one-to-one approach to get in touch with customers and prospects.

While 74% of consumers feel frustrated by irrelevant content, 56% of them would reward personalization with a purchase.

Data-driven tactics are the perfect response to this personalization requirement. It allows you to incorporate consumers’ inclinations, pain points, and attitudes to deliver personalized experiences both in digital and physical fields.

Content personalization also turns your communication more persuasive, improves customer conversions, and boosts engagement.

Improve products and services

Products and services can also be personalized and better designed to respond to buyers’ expectations. Analyzing clear data will help you understand whether you need to develop a new product or give an existing one new functionalities to match your customers’ needs. This kind of information also guides you to make the right decisions on when to invest in innovation and when to change small details that make a difference.

Besides, data-driven marketing ensures companies always keep an eye on the market to launch tailored, untried products. Data will assist you in when to launch something new, to know how much people are willing to pay for your products and services, and what can be enhanced to increase customer satisfaction.

Ask for feedback 

Another way data-driven marketing impacts customer experience is via feedback. Remember that people use social media to discuss brands and experiences, and when they talk about your company, you should be the first to know. Practices like social listening will help you monitor what people say on social media networks and collect precise data to gather feedback and insights into what’s working and what needs refinement.

Predict customer trends and market changes

Customers are avid for brands that can communicate and act based both on their individual preferences and what’s going on around the globe. Sustainability, social responsibility, storytelling… These are all actual trends that brands should pay attention to while planning their year. Closing your eyes to the market and only focusing on customer behavior is dangerous, as the external environment can dictate what trends will create buzz and what you can do to make people more interested in your brand.

Data-based predictions are important to keep you one step ahead of your competition, especially in times of change. Timing is crucial: Losing the chance to reply quickly to changes and real-time events might harm your brand in ways you never thought possible. With that in mind, make sure you use data to be prepared for change.

Reach customers where they are

Uncovering the best channels for promoting your brand can be a challenge, but data-driven marketing clarifies what those channels are and how your customers use them. This will prevent you from investing unnecessarily in channels that have bad ROI and planning media usage poorly.

With a more concise understanding of trends, you may get a broader view of channels’ tendencies to use them correctly, building more responsive communications. Batches of customers will also benefit from an enhanced content distribution from your part.

Make customers more engaged

Data automation is the ultimate principle to direct creativity into engaging strategies. In the past, marketers could only deliver a few types of customer service — versions back then didn’t vary, and general communication was even acceptable. Nowadays, though, our hectic and ever-changing routine requires more from brands. If you want to truly engage customers and make them loyal to your brand, you better start seeing data as the main resource to achieve better engagement rates.

More interested in experiences than in products, customers these days expect to be listened to and empowered by appropriate brand responses. Not only people are willing to pay more for better experiences — engaged customers are ready to invest emotionally in brands, and this is vital to any long term customer relationship.

Besides making you relevant in consumers’ minds, engagement pays your bills. Companies that have improved engagement increase purchase frequency and order sizes. This keeps revenue coming in and customers satisfied with relevant buying and connection experiences.

How to work data-driven in consumer segmentation

To apply data-driven marketing in your company, you need to be ready to extract, treat, compare, and analyze digital information from multi-channels, transforming it into knowledge.

We know this multi-channel information means millions and millions of data coming from social media, website analytics, cookies, CRMs, consultancies, market data, competitors, and more. But, thanks to technology and digital transformation, data-driven companies use analytics and algorithms to filter and select types of data that matter the most to them.

There are data-driven solutions — software and methods — that will help you segment your customers and visualize information in intuitive reports. With the advances of machine learning and artificial intelligence, machines gather data around and bring it to you whenever you need it.

One of these tools is the Customer Data Platform, also known as CDP. A CDP should provide you with the right insights to create personas, attract and qualify leads, create new content strategies, and develop customer relationships.

Be aware that marketing segmentation is a key-strategy when it comes to the data-driven mindset. Separating customers by interests, job titles, age, location, gender, and more is an amazing strategy for companies that wish to come up with outstanding marketing strategies instead of sending mass emails and trying to acquire leads through general advertising. Segmentation will pull you closer to generate real-time audience engagement.

For example, in 2015 Very.co.uk combined customer preferences with data about the weather to create personalized homepages to attract consumers to their e-commerce. In the process, 1.2 million versions of the website could be displayed, matching customers’ interest. For example, if you were looking for homeware, your homepage would bring special promotional messages that had everything to do with the products you were looking for. It is completely personalized — and that was only possible because Very.co.uk data scientists created complex algorithms to predict customer behavior.

Nubank, the largest Fintech in Latin American, is another company that embraces data-driven marketing to customize the customer experience. Nubank created ‘wows’, the name given to specific gifts customers receive when assistants feel a special type of connection while serving them.

Every gift is designed especially to the customer, considering their preferences and context. Nubank recently gave a consumer that owns 85 dogs a box full of dog toys, bone-shaped letters (written to the customer herself), and a device that throws dog treats in the air.

Examples of data-driven culture

Data-driven marketing has been so relevant it is leading a policy of its own, known as data-driven culture.

Data-driven culture allows organizations to replace opinions and guesswork with data-derived facts. Here, data is the main resource for collecting and leveraging insights in every company’s department. For this reason, all operations and routines will revolve around it, creating a new decision framework that relies on collaboration to move, integrate, and combine data more efficiently.

This means information must flow effortlessly through people, processes, and solutions so decisions can be made in a matter of seconds. There is no time for waiting: Business intelligence, technology, sales, product, marketing, and many other teams must have quick access to data to enhance customer interactions as swiftly as possible.

To give you a real case example, The Coca-Cola Company in Brazil assembles a data-driven culture to machine learning and AI to analyze its market and consumers. From three to three months, Coca-Cola employees set goals based on data and measure their progress through indicators and continuous information exchange.

It is also interesting to mention that Coca-Cola uses digital as a leading measurement tool and values people diversity to boost collective learning.

Worldwide, Coca-Cola is also known for its successful data-driven campaigns and agile mindset. In practice, data helped Coca-Cola deliver the Cherry Sprite flavor, which was inspired by the fact many customers mixed their drinks in self-service drink fountains. It also drove the company to create personalized AI assistants for vending machines that can behave differently and allow consumers to personalize drinks.

To mention one more example, Coca-Cola has been using data-driven marketing to track photographs of its drinks on social media, using image-recognition technology — this allows the company to target customers and deliver more efficient adverts, considering their consumption behavior.

At the end of the day, it’s clear to see that companies that have absorbed data-driven culture are completely different from companies that haven’t. Data-driven companies achieve tremendous results by dealing with complex multimedia channels — like videos, social media, ads, email, and liveblogs; — to reach customers with the right message at the right time. This ability is closely tied to automation and analytical approaches, which permits operations to be optimized, and audiences to be attracted more effortlessly.

Data-driven marketing is the future 

We know making the best marketing decisions is a challenge as much as it is a basic requirement. Moreover, facts tell us the future of organizations will be decided by the ability to use data wisely — and we know you don’t want to be left behind.

Arena helps media companies all around the world to encourage engagement and streamline customer data to smart marketing campaigns.

If you’re willing to be assisted by a Customer Data Platform to boost your audience and work data-driven marketing with your customers, get to know more about how we can create powerful experiences for your users.

The Difference Between Data Management Platform (DMP) and a Customer Management Platform (CDP)

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A data management platform works as a warehouse, collecting, organizing and activating third-party data in a single place. Keep up and find out how to benefit from it!

Data is a crucial resource in this business era. However, it can be useless if the company doesn’t know how to professionally manage all that amount of information, wasting thousands of dollars advertising to an incomplete or insufficient database usage.

In a digital world of first, second and third-party information, a Data Management Platform, also known as DMP, can transform piles of databases into profitable resources. Take a look!

What is a Data Management Platform (DMP)

Customer experience is not a linear walk. They will leave crumbs of information all the way along their relationship journey with a company. That process results in the accumulation millions of data throughout the years from multiple sources.

Most times, those data can seem random, incoherent or fragmented. That may happen when there is no right management of it.

Then, some questions become trivial:

  1. Who are the visitors on my website?
  2. What are they looking for?
  3. How can you have direct contact with them?
  4. Why they are not making deals with me?

A data management platform (DMP) is a tool to filter all those pieces of information into organized profiles for audience segmentation or insights for decision-making.

After that, your company will know exactly who they supposed to talk to; how these audiences behave; what is the best approach along the sales funnel to them; if the investment made in advertisement campaigns has the appropriate segment and more.

You can even create cross-media analysis, which is when multiple platforms, on and offline, can support the same campaign.

How Does a DMP Work?

Operating as a central intelligence system for digital marketing, a DMP creates a perfect definition of your ideal customer by organizing millions of information into demographic, consuming habits, interests and so on.

You can obtain new forms of segmentation through DMP, such as a non-dependent on the context or content one. This new segment is now based on the profile of the audience, regardless of the advertisement subject or the platform displayed.

To function, a data management platform operates in four steps:

Collect

It all begins with data collection, third-party information acquired by relevant partners with similar or identical market spaces. These data can be provided from CRMs, customers’ registration, e-mails, website data, previous purchases and whatever more relevant material is available.

Even though DMP is made to operate third-party data, it also supports some first-party data to improve the information given.

Organize

In this step, the DMP classify the info into categories, grouping them as clusters. Clusters are a type of audience segmentation that combines customers with similar marketing sales behaviors in one file.

For example, it is possible to create a group of customers who has made most of their purchases by ad clicks, or those who spent a certain amount of money in a product or service related to yours, who has more visits in a specific category in a website that might fit your business, etc.

Activate

Now, it is crucial that the data management platform used is agnostic, which means it will be compatible with any digital platform. So, if the company wants to run a campaign for the brand in social media, websites, search engines, etc, it will be just fine. The activation itself happens when the campaign is on.

Learn

By analyzing the return over the investments made on the ads, it will be possible to understand the depth of cluster segmentation. The company will have more domain over the results acquired since the data is much more precise than any other type.

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What Can You Do With a Data Management Platform?

One of the main benefits a DMP provides is the cluster: high-detailed information about customers so you can create hyper-targeted ad campaigns, delivering more conversion rates and increasing the ROI of your company.

Using a DMP, you’ll be able to create accurate segmentation, making the proper usage of your third-party data by giving your audience the right message.

Practical Example

Imagine you run a dental clinic and want to expand your qualified leads base for a specific segment, let’s say dental implants. That is one of the most expensive procedures you have and it is not salable to any type of customer.

Typically, you would create a campaign based on people interested in dentistry or dental implants in a wide range, fitted in average age, near your clinic.

With a DMP, the depth of your segmentation reaches this: men and women, from 40 to 70 years old, who have downloaded some white papers about dental implants, researched a number of keywords that demonstrate the need for professional information and live within 5 km of the clinic.

Here are some possibilities your company can reach with this type of segmentation:

  • Retargeting: easily implement personalized retargeting campaigns based on specific activities and behaviors online.
  • Prospecting: integrate with third-party data sources for the acquisition of anonymous data, achieving greater precision and scale in online campaigns.
  • Website optimization: use your own or third-party data to provide customized content to different consumers when they come to your page.
  • Audience intelligence: cross your first-party data with other third-party to learn more about your audience and reach the people most likely to convert.
  • Better ROI: use an analytics tool that centralizes online campaign performance data to determine which audience segment performed best and where to focus your efforts in the future.
  • Productivity increase: eliminate the bottleneck of needing IT to reach out for your data and have all your teams able to take them out, ready to use.

DMP Benefits for Companies

So far, we have seen in order to escalate your business, having the right audience to talk to is fundamental. This is market intelligence. Your company can no longer have a vague idea of who their customer is. It is necessary to personalize and amplify to get the following benefits:

Cost-Effective Advertising Campaigns

When you have this level of audience segmentation, you can spend every dollar of your budget on better-targeted prospects. Get the return on the investment you need to.

Lower Technology Investments

To run a DMP, you won’t need an extra support. Your whole team, from customer success to follow-up sales, can easily operate the system. As we mentioned before, there is no need for IT.

First, Second, and Third-Party Data Combined

No data is left behind. Even a messy pile of customer information can turn into gold here. As this platform gathers and organizes party data, every piece of a database is important, nothing is wasted.

No Data, No Success

Regardless of the type of industry you are in, uncountable amounts of information are huddled and enter your company through different doors: billing spreadsheets, sales reports, feedback offered by different media, social networks, loss or conquest of new markets, CRM, etc.

Such a thing must be used to leverage business marketing strategies. That is the reason why it is so important to generate an efficient information collection, organization and analysis on a daily basis of a company, as DMP does.

From this, a strategy can be developed over decisions based on information, including those related to strategic and operational marketing. That is the Data-Driven Marketing.

Data-Driven Marketing

Data-Driven Marketing helps, for example, to create a guideline for campaigns using DMP clusters. Besides highlighting the features/benefits/quality/etc of a product or service, it enables a work of relevant engagement with your consumers, delivering exactly what they want.

As a result, communication is enhanced by user experience and becomes more aligned with the needs of its audience.

Strategies will be able to still cohesive and aligned even when using a larger number of channels. Marketing campaigns have been running more frequently in social networks, which is the place where interaction has a leading role.

It keeps getting more essential to own proper knowledge of the market slice you are in. Its audience and characteristics indicate the way your company should brand, advertise and sell their product.

Big Data

When we reach for the definition of Big Data, we find a true technological revolution, making more possible to qualify the results obtained. Big data is a master process of analyzing and interpreting a great volume of data stored somewhere remotely.

Information is available everywhere online in a non-confidential way. No matter how large the amount of information is, Big Data can reach and group them according to interests.

Big data can be used in several business routines. However, to use it properly, it is mandatory to have not only knowledge about the technology, but also to identify which are the touchpoints in your company that will be impacted by its implementation.

By that, it will be possible to make a more efficient allocation of resources and increase the return over the investment in those data analysis solutions. And that is how a Data Driven culture is established.

Thus, the company must act so all teams understand the importance of data integration in the definition of strategies and work based on that!

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How a DMP Can Boost Marketing and Sales Results

Marketing and sales work as the core of the data management platform. This is where it starts, through hyper-segmented audiences. One of the biggest mistakes –– and frequent too! –– of digital marketing campaigns is having an incorrect or too wide segmentation.

Besides impacting those who are not part of your true audience –– and might cause a bad reputation for you ––, there is going to be a significant waste of your marketing budget that may harm your ROI.

Every click or scroll on the screen can generate data. When your marketing strategy is aligned to DMP guidance, you hand over to sales team customers ready to spend their money.

DMP and Sales

At this stage, sales have a unified perspective over the data and better cards to play, such as real-time interactions.

This is a priority in marketing and sales now. A high-performance sales team, which are those with the upper sales amount, increase the chances of achieving their mark by real-time interactions with the customer.

But we are not talking about aggressive and unprepared approaches here. Sales’ strategy must contemplate the best ways to do it based on who is the audience. By that, the integration of the DMP with marketing and sales is crucial for higher performances.

The Main Differences Between DMP and CDP

There are a lot of similarities between Data Management Platform (DMP) and Customer Data Platform (CDP). But there are also some very specific characteristics we need to keep them well established. Here they are:

Data Collection

One of the main differences between CDP and DMP is that DMP uses cookies to track users’ movement and target marketing strategies more efficiently. DMP was developed to search for data on advertising networks.

On the other side, CDP is a technological advance that gathers customer data from different sources and use it to generate more appropriate content, email marketing or offers.

Objective

DMP was designed to create deeper segmentations for the marketing strategy. CDP focuses on improving conversion rates and customer engagement, creating a richer consumer profile with more information.

CDP is also able to capture information from different channels and devices, in an automated way.

Therefore, investing in a CDP or DMP allows you to transform your company, employing more resources and intelligence to the business, and promoting your brand to a great and higher level of reference and success in the market.

How about starting now? Arena has a Customer Data Platform solution for your company. Build your clusters, make better advertisements, and talk straight forward to the audience you need. Click here and visit Arena’s CDP page!

Liveblogging: a Successful Engagement Strategy

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Liveblogging helps companies to generate a high-quality content experience that widens their audience and increases true engagement in real-time. It is the right tool to empower the ownership of audiences, automate content distribution, and boost revenue.

In today’s breaking news cycle, there’s no room for being slow and buggy. More than ever, people want to know what’s going on as soon as occurrences take place. Besides, physical space is no longer a barrier. Immediacy and urgency must be answered with instant involvement, no matter where people are. That means that, if you’re making your audience wait, you’re in trouble.

If your company provides any type of content in this fast and ever-changing environment, you already know what’s obvious: in order to make readers spend more time on your website, you need to be relevant and deliver news in a more dynamic way.

And that is why your company should have a live blog strategy.

What is a Live Blog?

A live blog is a customer engagement platform that allows companies to bring together different forms of content to create high-quality and real-time experiences to their audience. This kind of platform makes it possible to embed videos, images, texts, and audios from live streaming and social media channels into short blog posts to involve readers in events that matter to them.

By having a live blog strategy in our current on-the-go environment, organizations can use a smart variety of tools and sources to cover a particular event and engage users that are watching remotely.

Watching isn’t everything users do, though, and that is the cherry on top. Live blog followers can actually feed the stream with their comments and reactions. They can interact with other people, including those who are airing the event – journalists, reporters, expert commentators, or public figures that shed light on their topics of interest.

This makes a live blog experience highly personalized and interactive, and very different from television linear-watching or outdated written posts.

In a nutshell, live blogging is to broadcast real-time occurrences through short, simple, more frequent, and efficient posts, whatever the channel they’re in.

Sneak a peek at how companies have been using live blogs through the ages.

In order to broadcast conferences, technology companies started live blogging in the 2000s. Since then, it has become a popular and essential way for journalistic platforms to provide information on digital channels chronologically, keeping people updated. The Guardian itself has said that live blogging has transformed journalism.

Nowadays, companies from different cores and departments are using live blog to engross their content strategies. From sporting events to elections, from protests to music festivals, live blogging is already a reality when it comes to event coverage.

Why Live Blog?

As much as people currently spend more time engaging with highlights on social media, their thirst isn’t easily quenched by scrolling feeds on Instagram and reading breaking news on Twitter. Social media and traditional blogging aren’t enough to genuinely engage audiences anymore. 

Instead of simply reading the news and watching videos to absorb information, people want to live experiences and be part of them, even if they are sitting in their living room or working at the office.

In this context, a live blog strategy helps organizations to reach wider audiences and build authority towards topics they are interested in. It matches what customers are looking for: simplicity and easy access, all in a single place.

Consider this: you’re covering an important event and are about to live blog an exclusive interview with a popular figure in your niche. As soon as you broadcast, your readers will watch it in real time, send their questions, and discuss the interview with each other.

As you post a great news-driven package with videos, texts, and more regarding the occurrence, not only you’re giving your readers a glimpse; most importantly, you’re giving them the chance to live the experience with you.

By allowing your audience access to discuss and witness all the real-time content you’re providing, you drive conversation and traffic to your website and create a sense of community for people who are watching. If they have a good experience keeping track of a live event on your blog, they will see it as the go-to place to get useful content. Eventually, they will come back to check what’s new.

Besides helping you to establish authority as a reliable source of information, a live blog strategy boosts your audience. And, as you already know, an engaged audience is more likely to stay on your website longer.

Academic researches show that people all around the globe are growing supportive of live blogging. Plus, they make it clear that live blogs are here to stay. A survey conducted by the Reuters Institute for the Study of Journalism, in 2013, found out that readers like live blogs better than static content they can’t interact with – not to mention survey takers also believe real-time live coverage to be more reasonable and neutral than written posts. 

The Internet has made it easy for any company to broadcast important moments and stories to update and engage customers. That being said, live blogging is a huge opportunity for big, medium, and small-sized companies to give their audiences original and meaningful content while attracting and engrossing the public.

A live blog also has the potential to empower your company’s editors and optimize editorial work. Two people may live blog simultaneously, communicating with each other and taking online interaction to a new level.

With so much information being published every second, every day, your editors better have a concise publishing tool to bring data together and widen discussions, letting users engage with their posts.

There is so much untapped potential that can be taken advantage of by a live blog strategy, especially in the pandemic context we are witnessing. It represents an evolution in digital communication strategies and its power is evident, from politics and business to fashion and music.

Now that you know the importance of live blogging, let’s get a little more in-depth on how to use it for your content strategy.

Using Live Blog for your content strategy

When done right and smoothly, live blogging can engage your community as few things can. Live blogs have an amazing power to connect, share, analyze, educate and advertise. It is the perfect opportunity to answer to five essential questions towards any occurrence: who, what, where, when, and why.

So as to use Live Blog correctly in your digital content strategy, you need to pay attention to some details in the first place.

A live blog strategy demands a huge amount of focus while the event takes place. Still, you should be prepared way before the event starts. In the first place, choosing the right events to live blog is essential. The experience needs to be valuable to your customers, otherwise, you will be wasting money and time.

Secondly, a bunch of matters should be taken into account after you’ve chosen the ideal event. How is the internet connection and infrastructure where your editor is planning to broadcast? In those minutes where little is happening at the event, what material will you show your audience? How will you keep the attention of your public and increase their engagement after the streaming?

Keep in mind that you need to have a content strategy for what you’re communicating before, during, and after the event.

Last, but not least, it is equally determining to find a platform that fits your company’s needs and is easy for your customers to use. Live Blog platforms should be secure and able to go off without a hitch, aligned with high-level customer experience.

It also should be versatile and ready to run on multiple operating systems, working just as well on both mobile and desktop devices, and offer personalized setups.

You can add live chats so your readers will engage in quick-paced conversations and spend more time on your website. You can create polls to know that their opinions are. You can cover breaking events as much as events that are unfolding during a longer period of time. The possibilities are endless.

It all depends on how your company communicates with your audience and what concerns will be addressed by the real-time content you will stream. A live blog strategy can be a powerful engaging tool during official announcements, when related news break, in Q&As, and even in product launches – Apple being the biggest example on how to use live blogs for launch talks.

Once you decide to live blog, you will notice that it is easier to depend less on social networks. However, it is also possible to take advantage of social media integration by using automate live blog solutions to compile news from a wide variety of sources.

Let’s not forget that live blog strategies can work only so far without motivated human resources behind them. Technology is essential, but customer experiences are deeply affected by people interacting with readers and users. And that is where live blog makes your strategy flourish: by putting the right editors behind the screen to create fantastic customer experiences.

Take a look at how Arena’s clients are empowering their content and engagement strategy by live blogging.

A press conference to fight for: Fox Sports

Ahead of its blockbuster in 2018, UFC live-blogged a heated press conference led by fighters Conor McGregor and Khabib Nurmagomedov. Seen as the most talented mixed martial artists in the world, both UFC icons were watched by over 500,000 people on Youtube. Meanwhile, Fox Sports live-blogged the conference, widening discussion both in their timeline and live chat. It successfully gave readers an exclusive place to comment about the fiery discussions that followed.

Jambase: music any time, anywhere

When it comes to live blog strategy, Jambase promotes live events to connect music fans everywhere with the music they love. One of those is “Dinner And a Movie”, a weekly event that live streams Phish’s concerts. The livestream gives fans a chance to watch previous Phish shows while discussing in the live chat. A plus is that Phish’s Replay, as the event is called, promotes recipes that readers can cook before watching the shows – an action that brings them together.

Greenpeace: As it happened: #BarclaysShutdown

Tired of watching Barclays pour billions into fossil fuels, Greenpeace activists enrolled in shutting down more than 100 Barclays branches across the United Kingdom in 2020.

The event was soon promoted on Greenpeace’s website. #BarclaysShutdown was live-blogged chronologically. Tweets, videos, and links that redirected people to email Barclay’s CEO were brought together as a way to deliver fresh news regarding the shutdowns and create awareness. 

Liveblogging the protests also shed a light on the challenges Greenpeace faces when it comes to climate-wrecking industries and generated a sense of community between activists – even those that couldn’t physically join.

Learn from those who are engaging audiences through their live blog strategy

To sum it up, live blogging helps you reach wider audiences and attract public attention while providing authentic and exclusive content. As a result, it increases customer engagement and revenue.

Arena’s live blog solution is highly customizable and allows the addition of social features to enrich the interactions between you and your audience. Our platform works on any website, from desktop to mobile, supports live chat rooms, and is ready to manage multiple people covering the same event at once. It also contains a mobile app that makes possible a post-on-the-go strategy, so your editors won’t miss a thing while broadcasting.

We work day after day to empower editors from more than 120 countries to cover any breaking news or live event in real-time, breaking their dependence on social networks.

So, if you want to use content to truly engage your audience, it is time for you to join us and find out the best professional and user-generated content using our advanced content discovery platform.

Claim your free trial now and start live blogging right away!

20 Ways to Boost Results with CDP

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From personalized advertising campaigns to attribution modeling, CDPs can help you extract the best out of your organization’s data

“Data is the new oil”, says the business cliché. No matter the sector your company operates, it certainly collects data from a number of sources – from unstructured qualitative data (from social media and call centers) to quantitative insights on paid campaign efforts and sales channels.

Marketing executives have increasingly more customer interactions to be aware of and are required to get a broad, deep picture of the audience’s needs and pain points.

A few years ago, it would have been enough just to have a DMP and CRM tool to manage customer data. They are still important today but hold limitations in capturing users’ journeys and profiles as standalone platforms.

A 2018 survey made by Forbes with 400 marketing leaders showed that most of them saw a gap in data management in their organizations, which is still true today. Only 19% reported having a robust set of analytics and technology tools to support customer-data-driven decisions. Besides, sometimes it can be challenging to make data accessible (and actionable) for marketing teams.

That is where customer data platforms come to play, with the purpose of connecting the dots between different data sources. Last year, the Gartner Institute pointed customer data platform as one of the four main emerging trends for marketers in 2020, along with blockchain, AI, and real-time marketing.

But what exactly is a CDP (Customer Data Platform)?

A Customer Data Platform is a software capable of unifying customer data from various sources, gathering quantitative and qualitative customer information across multiple touchpoints. It aggregates first, second and third-party data, as well as information collected from multiple channels, systems, and devices. 

If you lead marketing at a large company, you know how difficult it can be to connect user’s data, once the customer’s journey has become more complex with so many devices and channels available. 

With that in mind, we have prepared a list of 20 ways customer data platforms (CDPs) can improve your marketing strategy and results. 

1) Generating accurate customer profiles

CDPs can basically spot who your customers are – almost literally. They are able to filter all collected data through algorithms to determine unified customer profiles. In a single platform, It compiles identity, descriptive and behavioral data that can give you context on current customers and prospects, making it easier for marketers to build accurate personas. 

The type of data your team chooses to collect will vary according to your business and industry. If you work at a media company, for example, you’re probably more interested in customers’ preferred media channels than details about customer’s cars, information that would be crucial for car dealerships, on the other hand.

2) Accessing updates in real-time

Marketers know that customers’ preferences evolve over time, but most data management tools can’t always spot those changes. In CDPs, the processing of data happens in real-time, which makes it possible to spot changes in customer behavior in both the short and long-term. 

If a prospect stops using YouTube and migrates to Twitch, for instance, your team can quickly detect it and redirect campaigns.  

The long-term approach is also possible because CDPs can hold data for long periods of time, unlike data management platforms (DMPs), which usually hold data up to only 90 days (a cookie lifetime).

3) Avoiding data silos

Much of the data from an organization is generated and stored in different systems and departments, which makes it rarely accessible to other parts of the company. The result? A less collaborative corporate environment, less productivity, and less accurate customer profiles.

With CDPs, a great deal of a company’s data can be stored in a single, user-friendly interface. 

4) Giving marketers control over data management

For marketers, relying on other departments for reports and insights can be time-consuming and unproductive, since not everyone is on the same page about marketing needs. In that sense, CDPs also optimize the work of marketing professionals, because they can be managed by marketing teams instead of adjacent teams (like sales) or third-parties. 

Yes, CDPs should be useful to a variety of departments within a company, but every team can adapt their use according to specific goals while having access to all kinds of company data. That way, teams can also quickly scale marketing efforts and get new processes started in days, not months.

5) Understanding customers’ motivations

These days, brands don’t want to know just how a customer relates to their brand and category, but also what are his or her life aspirations and beliefs. Beyond customer profiles, CDPs can provide personality and behavioral data about customers, helping you understand their inner motivations as people, not just as customers. 

Almost like a social listening tool, you can find out the subjects they are discussing, topics they search for, preferences on content, politics, or products.

6) Connecting online and offline touchpoints

In a recent report, PWC found that the number of companies investing in omnichannel experiences has grown from 20% to more than 80% in recent years. While some marketers still struggle to be truly “omnichannel”, CDPs are able to track both online and offline customer data. 

A good CDP can combine information from various online and offline tracking applications, to get a full picture of where customers go, what products they search for, what they watch, read, or buy. A regular CRM tool, as a counterpoint, cannot pick up on offline data unless it’s manually setup.

7) Tracking interactions across different devices

Connecting interactions across multiple devices is also crucial for marketers who wish to provide seamless experiences to the audience. The CDP can connect interactions from a single person across different interfaces. 

The platform captures information such as time spent on the page, email and cookies used. If a customer accessed your page through different browsers at a desktop, and then accessed again through phone, a few days later,  you’ll know it. 

8) Optimizing targeted advertising campaigns

A CDP can automate the usually manual process of creating advertising audience clusters. From there, your team can use data to drive campaigns and promotions across multiple touchpoints, creating highly targeted, personalized advertising campaigns (CDPs can be integrated to Facebook pixels and Google Ads, for example).

Without a CDP, building these campaigns for complex audiences would take a lot more time and effort. The CDP lets you access clusters of customers and acknowledge what products they show interest in,  as well as their purchase intent and how likely they are to churn. 

9) Attracting Marketing Qualified Leads (MQLs)

A CDP is where Marketing, Sales Customer Experience and Customer Success meet. By centralizing information from these areas in a single platform, companies can optimize their marketing resources and efforts. If marketers can find out exactly where are the friction points in customers’ journeys, it’s more likely they will come up with the right messages and campaigns for every stage in the conversion funnel.

Ultimately, CDPs can support marketers in attracting more qualified leads. A study by Forbes shows that 53% of marketing executives are using CDPs to engage with existing customers’ needs, increasing the likelihood that they will become recurring clients.

10) Reducing operational costs and improving ROI

As customer data platforms can be considerably automated, they bolster efficiency and reduce operational costs. After all, if you know exactly who your customers are and can streamline the targeting process, it’s likely you’ll impact the right customers at the right moment with the right formats.

As a result, you can optimize Costs per Click (CPC), Costs per Impression (CPM), and Customer Acquisition Costs (CAC).

11) Tracking customer engagement (or disengagement)

In the myriad of data collected by CDPs, there are also quantitative and transactional data that reveal how your customer relates to your company. From buying history to abandoned carts, email click rates and responses, website visits, product views and social media engagement, your team can get a better sense of how’s the relationship between your audience and your company – and then manage it effectively.

12) Improving overall customer experience

A Walker study discovered that, by the end of 2020, customer experience will overtake price and product as the main brand differentiator among customers. When we talk about big companies and huge data sets, the lack of a CDP can actually result in poor customer experience.

Not integrating data results in friction along the customer journey, no wonder customers often complain about emails suggesting a product they just bought, or say they were impacted by wrongful ads and recommendations. Nowadays, people simply expect your company to know about their journey across different channels, and CDPs can help you a lot with that.

13) Boosting predictive marketing

Predicting customer behavior and preferences is what built companies like Amazon and Netflix. Predictive marketing is now becoming increasingly used by all sorts of businesses. This marketing technique, which determines the probability of success of different marketing strategies, is essentially fueled by data. 

Armed with a CDP, data scientists and marketing analysts can gather data from several sources and apply predictive models with a great level of accuracy.

14) Improving attribution models

With so many touchpoints with the audience, It is often difficult for companies to build a proper attribution model. According to Google, almost 80% of all transaction value involves at least two marketing channel interactions.

The customer data platform can optimize the attribution framework since marketers can send attribution data to the CDP and have a more accurate view of campaign performance.

15) Helping set realistic KPIs

By having a more holistic approach towards data, marketing teams can use CDP to measure and adjust expectations about key performance indicators (KPIs). You could even find out that your team is not tracking the right indicators, and choose new ones according to your strategy. 

However, when it comes to KPIs, CDPs must be used thoughtfully: more metrics possibilities don’t necessarily mean you’ll understand your customer better, so beware of the data that actually informs your strategy.

16) Complementing and optimizing existing marketing software

At the end of the day, marketers want more control over events in their channels, and so CDPs allow companies to deploy customers’ profiles to other marketing tools. Customer data platforms can be integrated to “delivery platforms” or “engagement platforms” to enable the planning of campaigns and messages.

CDPs can integrate your company’s email marketing or marketing automation software, website or social media platforms, and also live chat, CRM, analytics, and SMS tools. The amount of tools companies connect to their CDPs has to do, again, with the specifics of their business. Large businesses are likely to connect more tools than small companies.

17) Complying with data privacy regulations

One of the challenges marketers face is to balance personalization with data privacy, considering emerging privacy regulations worldwide. At first sight, it might look like a CDP could worsen privacy problems, since it tracks all sorts of data. From a practical standpoint though, a customer data platform can actually help companies comply with data privacy laws. 

To start, it collects mostly first-party data, which is key to data privacy. Second, it offers privacy configurations that can enforce your privacy policies. And third, a CDP acts as a single access point for data, which is safer than having multiple access points.

18) Experimenting with lower risks

CDPs are also a key engine for experimenting with emerging technologies and services. Imagine your marketing team wants to test an integrated campaign with a voice assistant for smart devices. While voice-activated marketing is still limited and won’t bring you scale, for now, it is seen as a prominent marketing channel for the future. 

By knowing your customers’ profiles, you can spot promising channels and formats and test them out with a small cohort of consumers. While combining insights to A/B tests, you might also come up with new business solutions and even ideas for revenue streams.

19) Feeding content strategy

In the age of Netflix and Spotify, customers expect personalized content that matches their particular moment in the customer journey. In that scenario, marketers have the challenge of being relevant and timely in their advertising efforts.

CDPs can help brands discover the formats of content and notifications that are more appealing to each customer, as well as when they tend to be more receptive to brands’ communication. 

20) Getting insights for products and services

If you once needed full customer research in order to understand customers’ unique needs, CDPs can give you hints about their preferences and needs. Because CDP gathers loads of qualitative information, it can also guide your product strategy.

By checking users’ feedback regularly, you can prioritize your product and service offerings to more closely match with customers’ needs. Or, you can identify trends and come up with completely new products.

Interested in a CDP for your company?

That is a lot of information about customer data platforms, right? It’s a lot to take in, so take a deep breath. Now, If you plan to purchase a CDP for your company, the next step is to check out the platforms available in the market and consider which one is the best fit for your business goals.

You might want to check out the specifics of Arena’s CDP, one of the most robust tools in the market. Register to this link to talk to one of our consultants and find out how our CDP can help your business.